IperionX Limited (ASX: IPX) has received positive results of the Scoping Study on the company’s Titan Project located in west Tennessee, USA.
The Scoping Study results demonstrate the Project’s potential to be a sustainable, low cost and globally significant North American producer of titanium, rare earths and other critical minerals needed for a low carbon future.
IperionX has two businesses – a critical minerals business at the Titan Project, which is the subject of this Scoping Study – and a titanium metals business, where it is currently producing titanium metal powders and prototype parts using our patented titanium manufacturing technologies that have the potential to significantly reduce both the cost and carbon emissions of titanium production relative to what is commercially available today. A separate economic evaluation is planned to be released for project development activities associated with our titanium metals business.
“The delivery of the maiden Scoping Study at the Titan Project is a significant milestone for IperionX and we are delighted to put Tennessee on the map as a major source of critical minerals for the U.S,” Anastasios (Taso) Arima, CEO and Managing Director, said.
“The Scoping Study confirms the Titan Project as a globally significant development of titanium and rare earths minerals, including the heavy rare earths that are essential for electric motors and defense applications, located in a leading jurisdiction and in close proximity to major potential customers. Importantly, the Scoping Study does not yet consider the potential upside associated with integration of the minerals operation with the Company’s breakthrough titanium metal technologies.
“The Titan Project economics showcase the potential for IperionX to generate significant cashflows from mineral operations over a 25 year operational life, including low-costs, an average annual EBITDA of US$117 million, with an NPV of US$692 million and IRR of 40% highlight the outstanding value associated with the Project.
“We are now rapidly progressing to be construction ready in 2023, with feasibility study level activities already underway and optimization of mine planning, processing and permitting pathways to commence shortly.
“We are looking forward to working with the community in west Tennessee to develop a generational critical mineral asset for the U.S., as well as advancing engagement with our other stakeholders including offtake partners.”
Scoping Study Highlights:
Largest potential source of U.S. titanium and rare earths minerals, including heavy rare earths
- Scoping Study confirms the potential for the Project to be the largest U.S. producer of titanium and the rare earth minerals, monazite and xenotime, which includes both light and heavy rare earths.
- In-situ metal content of titanium and rare earths over the life of the Project represents potential production of ~60,500 Boeing 787s and ~24,000,000 electric vehicles.
- Potential to satisfy 100% of the U.S. Department of Defense needs for titanium and the heavy rare earths required for national security.
- Opportunity for a rapid and low capex entry to the U.S. rare earth supply chain, utilizing Energy Fuels’ existing White Mesa mill in Utah.
Potential for significant cashflow generation including average annual EBITDA of US$117 million
- Potential to develop a domestic source of critical minerals in the U.S. with significant cashflow generation underpinned by low costs.
- Compares favourably to global projects and is located in a leading jurisdiction significantly closer to a large number of end user facilities.
- Importantly, the Scoping Study do not yet consider the potential upside associated with integration of the Titan Project (minerals business) and the Company’s breakthrough titanium metal technologies (metals business).
Globally significant U.S. critical mineral resource with massive potential upside in the region
- 100% interest in over 11,000 acres of titanium, rare earth minerals and zircon rich mineral sands properties in Tennessee, U.S.
- Production target of 243 million tons of mineralized material over a life of mine of 25 years covers less than 4,500 acres of the current land position controlled by the Company.
- Significant potential to grow production and Project life in the future.
Infrastructure, location and decarbonized supply chain advantage to major target markets and end users
- Significant cost advantages due to the location and proximity to existing low cost, world-class infrastructure.
- Major logistical advantage over many other critical minerals imported into the U.S. provides the potential for a further cost advantage and a lower carbon intensity supply chain.
Sustainable and community focused development
- Actively taking a “sustainable first” approach to all areas of development with a focus on zero carbon power, sustainable rehabilitation practices and community engagement.
- Building trust, broadening support, improving knowledge and promoting community participation and engagement in the development of the Titan Project.
Rapidly progressing to be construction ready in 2023
- Mineral demonstration facility at Titan Project being completed to facilitate feasibility test work, customer offtake discussions, downstream R&D and community engagement.
- Feasibility study metallurgical test work already underway after successful completion of pre-feasibility level test work in early 2022.
- Optimization for mine planning, processing and permitting pathway underway to facilitate a 2023 construction ready timeline.
For further information please visit: https://iperionx.com/
